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Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, and Jeffrey Lacker, president of the Federal Reserve Bank of Richmond and chairman of the Fed's Conference of Presidents, are leading an effort by some Fed regional presidents to urge Congress to refrain from stripping the central bank of its authority to oversee banks. In a recent letter to senators, Hoenig said legislation that has been proposed would not enhance financial regulation.

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Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, and Jeffrey Lacker, president of the Federal Reserve Bank of Richmond and chairman of the Fed's Conference of Presidents, are leading an effort by some Fed regional presidents to urge Congress to refrain from stripping the central bank of its authority to oversee banks. In a recent letter to senators, Hoenig said legislation that has been proposed would not enhance financial regulation.

Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, and Jeffrey Lacker, president of the Federal Reserve Bank of Richmond and chairman of the Fed's Conference of Presidents, are leading an effort by some Fed regional presidents to urge Congress to refrain from stripping the central bank of its authority to oversee banks. In a recent letter to senators, Hoenig said legislation that has been proposed would not enhance financial regulation.

The Federal Reserve Bank of New York prevented for more than a year the release of a document showing how Goldman Sachs packaged mortgage collateralized debt obligations and then bought insurance against their default from American International Group, Bloomberg Markets reported. When Goldman's CDOs went bad, the insurance that the bank, as well as Societe Generale, bought pushed AIG to the verge of collapse, leading to a bailout by the U.S. government, according to Bloomberg's report.

Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, said the government's mounting deficit could spur inflation or lead to another financial crisis. He said the debt was hindering the ability of the Fed to maintain price stability and economic growth. "Without pre-emptive action, the U.S. risks its next crisis," Mr. Hoenig said.

Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, said the government's mounting deficit could spur inflation or lead to another financial crisis. He said the debt is hindering the ability of the Fed to maintain price stability and economic growth. "Without pre-emptive action, the U.S. risks its next crisis," Hoenig said.